Steklarna Hrastnik envisages major investments in production with the aim of further development, expansion, and growth. The first step towards this goal is 4.2 million investment in the reinforcement of the packaging programme. It is expected that by the spring of 2018, the lighting glass production unit will be transformed into the packaging glass production unit. This gradually abolishes the production of lighting glass, and provides opportunities for further development of the packaging glass programme. All employees from the lighting glass production unit will be offered reassignment within the company.
Steklarna Hrastnik will invest EUR 4.2 million in the purchase of a new machine for packaging glass (IS-machine) and the transfer of the existing machine to Vitrum. This will increase the efficiency of the furnace in the new investment cycle by 25 tonnes per day; however, this is only the beginning - upon the acquisition of necessary permits, they plan to increase the capacity in Hrastnik in the coming years. Their ultimate goal is to increase the capacity of the furnace by 200 tonnes per day, which will also create 150 new high-value added jobs.
“The abolishment of the lighting glass programme is our opportunity to expand the packaging glass programme,” emphasised Andrej Božič, President of the Glass Division. Since the onset of the crisis in 2008, demand in the market of lighting glass has dropped sharply, especially at the expense of the increasing uptake of LED lights. Furthermore, Steklarna Hrastnik has faced a sharp price competition in this market, which is promoted by cheap products from the Chinese market.
Božič also pointed out that Steklarna Hrastnik invested EUR 2.8 million in the development of lighting glass unit over the past eight years; however, they are not satisfied with the results: “We were intensely looking for ways to increase profitability and the scale of operations. Cooperation with well-known designers also failed to meet the expectations that would economically justify the continued existence of the programme.” In 2018, Steklarna Hrastnik would have to invest at least an additional EUR 2.5 million in furnace renewal, which would be an over-investment for a programme that is not profitable.
Since Steklarna Hrastnik is aware of the importance of glass factory for employees, mainly from Hrastnik and the surrounding municipalities, they have been looking for ways to optimise the production and retain all employees - which they will succeed with the planned restructuring of production. All employees from the lighting glass production unit will be offered a redeployment within the company. "We will offer them conditions of employment that will be comparable with the current, if not better," said Peter Čas, General Director, and assured: “The transition to new jobs will be gradual and employee-friendly. Nothing will happen overnight. Employees will be integrated into the mentoring system in order to get acquainted with new production technologies, learn new tasks, and thus make it easier to take on new jobs.”
Glass packaging market flourishment
Conversely, the market of special glass packaging and perfume and cosmetic packaging has proven to be an opportunity for expansion, as demand has steadily increased in recent years. The increase in demand was exceptionally high this year. “We have decided to take action now, when the market of special glass and perfume and cosmetic packaging enables a great opportunity for expansion,” said Peter Čas, the General Director of Steklarna Hrastnik. Otherwise, Steklarna Hrastnik entered the segment of cosmetic and perfume packaging two years ago.
30 percent increase envisaged for the packing glass programme
Currently, the packaging glass unit has no room for the integration of machines, equipment and logistics, which are needed to increase capacities; however, the lighting glass production areas will provide the opportunity to do precisely that. The glass factory envisages more than 30 percent increase for the packaging programme. As already indicated, the new investment cycle begins with the investment in the purchase of a new production machine (IS-machine) and the transfer of an additional machine to the Vitrum location. By reorganising production, Steklarna Hrastnik will set the conditions for optimising production, raising profitability and new investments in the coming years.
The tradition of manual glass production remains
Despite its reorganisation, Steklarna Hrastnik will preserve the tradition of manual glass production. Manual production will be implemented upon special orders, such as promotional bottles or other exclusive glassware, which require this type of work.
